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President's Budget Includes Decrease In USDA Funding, User Fees

Friday, February 17, 2012

(American Meat Institute)

The White House this week released the President’s Budget Request for Fiscal Year 2013 (FY13).  The budget proposes $23 billion in discretionary spending for the Department of Agriculture (USDA), a decrease of $700 million from 2012 spending levels.     

The budget proposes $995.5 million in funding for Food Safety and Inspection Service (FSIS), a decrease of $8.9 million from the FY12 enacted level. The FSIS budget also proposes two new user fees: a performance-based fee which will be charged for sample failures or additional reinspection due to regulatory non-compliance, and a basic inspection fee to recover part of the cost of providing basic inspections.  According to the proposed budget, the user fees would generate $13 million from the regulated industry in 2013.

The Grain Inspection, Packers & Stockyards Administration (GIPSA), proposed budget for FY13 is $40.3 million.  This is an increase of $2.5 million above 2012, and includes a $1 million increase for Packers & Stockyards Act enforcement. The budget also proposes removing language added by Congress last year to limit USDA’s ability to promulgate new provisions included in a 2010 proposed GIPSA rule.

The proposal funds the Market Access Program at $200 million, the full level authorized by the 2008 Farm Bill.  The Foreign Market Development Program did not receive funding for 2013 under the USDA proposal due to the expiration of the Farm Bill.

The Agricultural Research Service (ARS) request was for approximately $1.1 billion, a net increase of $8 million.  This increase was achieved by eliminating $20 million in low priority projects and reallocating $50.4 million in funds. One long-term project eliminated was the $1,181,000 research initiative to develop new applications and environmentally friendly processes for animal hides and leather at the ARS facility in Wyndmoor, PA.

Finally, the budget includes $77 million in discretionary spending for the Agricultural Marketing Service (AMS), a decrease of $5.1 million from FY12 levels. This includes $33 million for the Market News program, a level consistent with FY12.  AMS administers the Market News and Reporting system for the livestock industry.

To view the FY2013 budget proposal for United States Department of Agriculture (USDA), click here: http://www.whitehouse.gov/sites/default/files/omb/budget/fy2013/assets/agriculture.pdf.

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